Insurance companies use Facebook to reject or reduce claims

What's happening

For years now, experts have been warning social media users to be careful what they post on their favorite websites because it can come back to haunt them in the future. In October 2012, author and attorney Chris Davis said that many insurance companies are now using sites like Facebook to discredit personal injury claims (InsuranceNewsNet.com, 29 October 2012).

Davis says he had a client who was passionate about snowboarding, and continued to ride even with intense pain after a car crash. Lawyers for the insurer scoured social media sights and found recent photos of the snowboarder. They were able to reduce the payout by $20,000.

What this means to business

Consumers, especially younger ones, are still struggling with the tradeoff between access and privacy. Brands need to help them understand and navigate these issues, wherever possible helping them to safeguard their personal information.